Technology: What’s Right for Your Small Business?
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Today’s small business owner has access to a greater array of affordable technology than ever before. There are so many choices, though, that it can be challenging to determine just what type and quantity of technology is most suitable for your needs.
Wants and Needs
Let’s talk for a moment about wants and needs. Small business ownership is all about constantly balancing the needs of the business against available resources. Adding to the challenge is the “want” factor – activities and things that you might want for the business, but that are still just out of reach or not a good use of scarce resources.
Just as you do in the rest of your life, you must make a concerted effort to balance wants versus needs when it comes to small business. For example, you might really want that big comfortable desk chair, but do you really need it? Or perhaps you desperately want a new laser printer, but is it a necessity for the business at this point?
The strategies you use to separate wants from needs and prioritize how you will use resources are best determined by you, so we will not attempt to deal with that here. Instead, the following sections focus on several categories of technology that small business owners might determine they need, and provides tips and insight to help determine the best choices for your needs.
Computers
For the vast majority of small business owners, a computer is truly a necessity. It is nearly impossible to run a successful small business without one. There are many different things to consider, though, when selecting the best computer for your circumstances. It helps to keep in mind that computer technology of the future could make your choices today obsolete and you should remember this before paying top dollar for a new gadget.
Desktop – This is the most traditional type of computer, and the least expensive. You can find a basic, functional computer for around $500 and sometimes even less if you find a good sale or rebate offer. A desktop works well if you are just starting up or need to add on a computer on a limited budget. It is also an excellent option if you need specialized components or functionality, such as a very large hard drive, advanced graphics or sound, a large monitor, or multiple monitors. Most office desks and related furniture are designed with the needs of a desktop computer in mind.
Laptop – This type of computer is growing rapidly in personality. It costs more than a desktop computer, but offers other benefits that many small business owners feel are well worth the cost. A laptop computer is lightweight, portable, and does not take up a lot of space. You can easily take it with you wherever you might need to go, and with wireless connectivity, you can have internet access in most places as well. There are laptops specifically designed to be small while others are designed as desktop replacements. The latter are still easily portable, but they weigh more and are larger than most common laptop styles.
Software
Computer software varies greatly in cost and functionality. Some programs and suites of programs are designed for the home user, while others are designed for the small business user.
Functionality – Software designed for small business use usually comes with greater functionality than that designed for home use. It might allow you to perform more in depth accounting activities, for example, or to create your own brochures, newsletters, and other marketing materials.
Security – Cyber security is critical in the small business environment. Your confidential information, such as financial reports, business plans, and personnel files, will typically be located on your computer so you must take precautions to ensure it remains safe. You should consider external security threats (viruses, spyware, malware, trojan horses, etc.) as well as internal security threats (password protection, user accounts, activity monitoring, etc.).
Compatibility – Programs and suites of software from different companies may or may not be compatible with each other. Many companies use this to their advantage so that you will choose their software exclusively as a way to ensure compatibility. Many competing software companies, though, do work to ensure that their products interface with each other on at least a basic level. Think about which pieces of software must work well together (inventory with fulfilment, accounting with billing, personnel with payroll, etc.) and test them to be sure there are no unpleasant surprises.
Peripherals
These are things like printers, scanners, fax machines, copy machines, and the like. The cost and quality of these items varies greatly, so consider your needs carefully.
Printer – You can get a decent printer for as little as $100 and sometimes even less, but these inexpensive models may not be robust enough for your needs. Think about how much printing you will need to do and what quality of printing you need. Just as important, though, is the cost of operation. Some nice quality printers are relatively inexpensive, but they might use a large amount of ink and/or that ink might be expensive to replace.
Fax – A basic fax machine is very inexpensive, but as you add functionality, the price of course goes up. The amount of memory in the machine will have a huge impact on how quickly it can process faxes, and the external controls (keypad, message center, etc.) should be easy to use. Think also about whether you would benefit from a fax machine that has connectivity that allows you to fax directly from the computer.
Copier – A copier may seem like a non-essential item for a small home-based business, but it really is not. A basic desktop copier starts at about $200, sometimes even less if you get one that is refurbished. If you are still not sure about whether to invest in a copier, think about getting one that is built into some other peripheral item, such as a printer or a fax machine.
All-in-one – This is an excellent choice for most small businesses, especially if you are on a tight budget or do not have a lot of space. A good all-in-one will have a printer, copier, fax, and scanner built into the same machine. They are quite handy to have, and when compared to the cost of getting each of these items individually even one with a lot of extra functionality can be a real bargain.
Handheld and Mobile
Probably the hottest area in business technology is the handheld and mobile industry. A mobile phone is no longer just a mobile phone - it can be a handheld computer, a personal organizer, an MP3 player, a direct connect walkie talkie, and more. The technology is amazing, and really cool…..but do you really need all of that fancy stuff? It depends.
Mobile phone – This probably falls into the category of a necessity, but that doesn’t mean it has to be expensive or fancy. The phone itself is important, but so is the service plan you choose and the length of the contract required. That “free” phone might be tempting, but remember that it is never really free. Check the details of the required contract, and watch out for extra functions that can really add to the monthly cost of service. Examples might include text messaging, sending and receiving pictures, web access, etc.
PDA – A PDA (personal digital assistant) is not strictly a necessity (after all, you can always use a good old fashioned day planner) but even a basic model can make your life a lot easier. A good starter model that allows you to synchronize appointments and contacts with your computer is generally a pretty good investment.
Multi-purpose – These are handheld devices that combine a phone, a PDA, and several other functions all into one. Their initial cost varies depending on the manufacturer and model, but their greater cost is in fees for ongoing monthly service. It can be very expensive to take advantage of all of those nifty functions, so think carefully about whether or not you really need them.
Maintenance, Updates and Upgrades
All of the small business technology equipment we have discussed so far comes with ongoing costs as well. It must be maintained on a regular basis; repaired when it breaks down; updated when new software patches are available; upgraded when you need more capacity; and replaced when it becomes outdated or impossible to repair.
Before buying any piece of technology equipment for your small business, find out about ongoing costs and factor those into the upfront costs. This is the best way to ensure that you buy the technology that meets your needs and is affordable over the long term.
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